University tuition fees should be cut to £7,500 to give the taxpayer better value for money, an official review recommends today. The Telegraph reports.
The current cap is £9,250, which means students are paying “too much” for their degrees, and the report recommends axing the “punitive” interest payments that students face while they are still at university.
To ensure that a greater proportion of student loans are paid back, they should be written off after 40 rather than 30 years, the report says, meaning many will be paying off student debt into their 60s.
The Prime Minister ordered the review of post-18 education last February, after coming under pressure following Jeremy Corbyn’s general election pledge to abolish tuition fees.
In a speech today, Mrs May will endorse the reintroduction of maintenance grants, arguing that “removing [them] from the least well-off students has not worked, and I believe it is time to bring them back”.
She will say: “There is much to be said for the panel’s proposal to cut fees and top up the money from government, protecting the sector’s income overall but focusing more of that investment on high-quality and high-value courses.”
Around 50 per cent of 18-year-olds now take places at university, but the vast majority fail to pay back loans in full, leading to mounting concern about the cost to the public purse.
“Generous and undirected funding has led to an oversupply of some courses at great cost to the taxpayer and a corresponding undersupply of graduates in strategically important sectors,” the review said.
“Our recommendations would restore more control over taxpayer support and reduce what universities may charge each student.”
Read the full article University tuition fees should be capped at £7,500 not £9,250, Government review says
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